Emerald Publishing

Table 3

The effect of R&D activities, human capital and market competitiveness on innovation (direct effect)

Variables	Product innovation	Process innovation	Marketing innovation	Organizational innovation
Internal R&D activities	0.490***	0.291***	0.225***	0.142***
Internal R&D activities	(0.029)	(0.030)	(0.034)	(0.034)
External R&D activities	0.252***	0.145**	−0.010	0.173**
External R&D activities	(0.065)	(0.067)	(0.078)	(0.077)
Share of graduate employees	0.027*	0.026*	0.039**	0.055***
Share of graduate employees	(0.015)	(0.015)	(0.017)	(0.017)
Outdated product and services	0.095***	0.021	0.081***	0.071***
Outdated product and services	(0.013)	(0.013)	(0.015)	(0.015)
Strong competition from abroad	0.033**	0.008	0.058***	0.020
Strong competition from abroad	(0.013)	(0.013)	(0.015)	(0.015)
Control variables
Firm size	−0.003	0.028***	0.013**	0.038***
Firm size	(0.005)	(0.005)	(0.005)	(0.005)
Market share of top selling product/services	0.034***	−0.009	0.064***	0.052***
Market share of top selling product/services	(0.013)	(0.013)	(0.015)	(0.015)
East Germany	−0.018	−0.010	−0.032**	−0.015
East Germany	(0.013)	(0.013)	(0.015)	(0.015)
Constant	0.059***	0.009	0.079***	0.011
Constant	(0.018)	(0.019)	(0.022)	(0.021)
Lambda	−0.082**	−0.014	0.082*	−0.073
Lambda	(0.038)	(0.040)	(0.046)	(0.046)
Rho	−0.22759	−0.03834	0.18907	−0.17096
Sigma	0.3607776	0.37153906	0.43255692	0.42843859
Wald χ² (15)	2649.10	1221.55	813.21	890.67
Prob > χ²	0.0000	0.0000	0.0000	0.0000
Observations	3,737	3,737	3,737	3,737

Variables	Product innovation	Process innovation	Marketing innovation	Organizational innovation
Internal R&D activities	0.490***	0.291***	0.225***	0.142***
Internal R&D activities	(0.029)	(0.030)	(0.034)	(0.034)
External R&D activities	0.252***	0.145**	−0.010	0.173**
External R&D activities	(0.065)	(0.067)	(0.078)	(0.077)
Share of graduate employees	0.027*	0.026*	0.039**	0.055***
Share of graduate employees	(0.015)	(0.015)	(0.017)	(0.017)
Outdated product and services	0.095***	0.021	0.081***	0.071***
Outdated product and services	(0.013)	(0.013)	(0.015)	(0.015)
Strong competition from abroad	0.033**	0.008	0.058***	0.020
Strong competition from abroad	(0.013)	(0.013)	(0.015)	(0.015)
Control variables
Firm size	−0.003	0.028***	0.013**	0.038***
Firm size	(0.005)	(0.005)	(0.005)	(0.005)
Market share of top selling product/services	0.034***	−0.009	0.064***	0.052***
Market share of top selling product/services	(0.013)	(0.013)	(0.015)	(0.015)
East Germany	−0.018	−0.010	−0.032**	−0.015
East Germany	(0.013)	(0.013)	(0.015)	(0.015)
Constant	0.059***	0.009	0.079***	0.011
Constant	(0.018)	(0.019)	(0.022)	(0.021)
Lambda	−0.082**	−0.014	0.082*	−0.073
Lambda	(0.038)	(0.040)	(0.046)	(0.046)
Rho	−0.22759	−0.03834	0.18907	−0.17096
Sigma	0.3607776	0.37153906	0.43255692	0.42843859
Wald χ² (15)	2649.10	1221.55	813.21	890.67
Prob > χ²	0.0000	0.0000	0.0000	0.0000
Observations	3,737	3,737	3,737	3,737

Note(s): The select equation is included in the regression, but it is not stated in the table. Standard errors are in parentheses, ***p < 0.01, **p < 0.05 and *p < 0.1

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